TPG Capital and KKR & Co. Inc. (NYSE:KKR) are in talks with TVS Motor Company Limited (BSE:532343) to invest at least $300 million to fund the expansion of its electric vehicle (EV) business, two people with direct knowledge of the matter said. "There are at least half a dozen-odd investment management firms who have evinced interest in TVS's EV business.

A major portion of the $300 million may be invested by TPG Capital, L.P. and KKR, who are particularly excited about investing in ESG-compliant and clean energy-driven ventures. TVS may raise $200 million more subsequently," one of the two people said, seeking anonymity. TVS Motor Co.

may raise the money in the September quarter by selling 20-25% of TVS Electric Mobility Limited, according to the two people cited above. The money from the PE majors is most likely to be used for acquiring more startups in the EV space and expanding TVS Motor's partnership with BMW Motorrad for the joint development of new platforms and future technologies, including EVs, the first person said. Spokespeople from TVS and TPG declined to comment, while an email sent to KKR did not elicit a response till press time.

TVS Motor may also use the proceeds to create electric vehicle and battery manufacturing facilities and services for the vehicles while keeping costs under strict control, the second person said, also declining to be named.